Oxford Life VS. Standard Life (Casualty)

[rousemark]

Does no one think they have an obligation to go by the company rules? If the application does not ask a question but the underwriting guide says not to write it, then the company cannot cancel or contest the policy based on the insured falsifying the application.. However if the company finds you submitted applications that did not comply with the UW guide they can cancel your contract. In fact, since most contracts state you abide by all rules published by the company, if they can prove you had knowledge that the client did not meet the requirements in the guide and yet you went ahead and submitted the app anyway, they could terminate for cause and not pay your vested renewals.

 

[bboman23]

Does no one think they have an obligation to go by the company rules? If the application does not ask a question but the underwriting guide says not to write it, then the company cannot cancel or contest the policy based on the insured falsifying the application.. However if the company finds you submitted applications that did not comply with the UW guide they can cancel your contract. In fact, since most contracts state you abide by all rules published by the company, if they can prove you had knowledge that the client did not meet the requirements in the guide and yet you went ahead and submitted the app anyway, they could terminate for cause and not pay your vested renewals.

I think this has went way over board. Of course I read the underwriting guides. I don't write insulin with SLAC but I wouldn't hesitate to if needed. I read the app and the phone interviewer reads the app. If they want to turn it down, I leave that up to them.

 

[PA Bill]

That's the point I was trying to make. UW will catch it, so why not read the UW Guide and save yourself some time and grief?

And what if the company sees a pattern of an agent doing this? They'll tighten up real good when they see one of his come in. Why is everyone always looking for a free lunch? They don't exist!

 

[goillini52]

And what if the company sees a pattern of an agent doing this? They'll tighten up real good when they see one of his come in. Why is everyone always looking for a free lunch? They don't exist!

I'd imagine that if an agent sends a lot of declines to them, they'll probably look at his apps even harder.

Just like JD said the UW's at RNA knew the quality of business he wrote, so he could get something issued that the average agent couldn't.

 

[PA Bill]

Does no one think they have an obligation to go by the company rules? If the application does not ask a question but the underwriting guide says not to write it, then the company cannot cancel or contest the policy based on the insured falsifying the application.. However if the company finds you submitted applications that did not comply with the UW guide they can cancel your contract. In fact, since most contracts state you abide by all rules published by the company, if they can prove you had knowledge that the client did not meet the requirements in the guide and yet you went ahead and submitted the app anyway, they could terminate for cause and not pay your vested renewals.

This happened to a successful agent I knew during my LTC/HHC days. He had a bad habit of ignoring "walkers" and sent a lot of business to this one very small company here in PA who got killed on the claims. Well, he had a substantial renewal built up and got in trouble with the insurance dept. on a totally unrelated matter. What do you think the company did under their contractual rights? You think they confiscated his renewal block as payback? Damn right they did and there wasn't a thing he could do about it.

Check that, he did sue them and the company settled with him for pennies on the dollar to make him go away. But if they had fought it in court, the agent wouldn't have stood a chance. Deep down, him and his lawyer knew this, so they accepted. And after the lawyer took his chunk? Well, you know the rest.

 

[Klutch]

This happened to a successful agent I knew during my LTC/HHC days. He had a bad habit of ignoring "walkers" and sent a lot of business to this one very small company here in PA who got killed on the claims. Well, he had a substantial renewal built up and got in trouble with the insurance dept. on a totally unrelated matter. What do you think the company did under their contractual rights? You think they confiscated his renewal block as payback? Damn right they did and there wasn't a thing he could do about it.

Check that, he did sue them and the company settled with him for pennies on the dollar to make him go away. But if they had fought it in court, the agent wouldn't have stood a chance. Deep down, him and his lawyer knew this, so they accepted. And after the lawyer took his chunk? Well, you know the rest.

So the moral of the story is, build up your business by clean sheeting and then sell the renewals?

 

[PA Bill]

So the moral of the story is, build up your business by clean sheeting and then sell the renewals?

More than one way to skin a cat!